CHARLOTTE, N.C., April 23, 2019 /PRNewswire/ -- Nucor
Corporation (NYSE: NUE) today announced consolidated net earnings
of $501.8 million, or $1.63 per diluted share, for the first quarter of
2019. By comparison, Nucor reported consolidated net earnings of
$646.8 million, or $2.07 per diluted share, for the fourth quarter
of 2018 and $354.2 million, or
$1.10 per diluted share, for the
first quarter of 2018.
"Our diversified business model helped us to once again deliver
a significant year-over-year improvement in first quarter
earnings," said John Ferriola,
Nucor's Chairman, Chief Executive Officer and President. "Our
plate, bar, and structural mills were strong contributors in the
first quarter, and several of our downstream businesses also
increased earnings as compared to the year ago period."
Mr. Ferriola continued, "While we are focused on bringing new
projects online to drive incremental earnings growth and margin
expansion, we are also actively evaluating other profitable growth
opportunities. We will remain disciplined and opportunistic,
consistent with our focus on shareholder value creation. Overall,
Nucor is well-positioned for continued growth and success, we are
building on our strong momentum and we remain confident in our
near-and long-term prospects."
Selected Segment Data
Earnings (loss) before income
taxes and noncontrolling interests by segment for the first
quarters of 2019 and 2018 were as follows (in thousands):
|
|
Three Months (13
Weeks) Ended
|
|
|
March 30,
2019
|
|
March 31,
2018
|
|
|
|
|
|
Steel
mills
|
|
$
689,398
|
|
$
560,503
|
Steel
products
|
|
77,433
|
|
85,814
|
Raw
materials
|
|
53,223
|
|
74,547
|
Corporate/eliminations
|
|
(130,438)
|
|
(204,952)
|
|
|
$
689,616
|
|
$
515,912
|
Financial Review
Nucor's consolidated net sales
decreased 3% to $6.10 billion in the
first quarter of 2019 compared with $6.30
billion in the fourth quarter of 2018, and increased
approximately 10% compared with $5.57
billion in the first quarter of 2018. Included in the first
quarter of 2019 results was a benefit of $33.7 million, or $0.08 per diluted share, related to the gain on
the sale of an equity method investment in the raw materials
segment. Included in the first quarter of 2018 results was an
expense of $21.8 million, or
$0.07 per diluted share, related to
the write off of deferred tax assets due to the change in the tax
status of a subsidiary.
Average sales price per ton in the first quarter of 2019
decreased 4% compared with the fourth quarter of 2018 and increased
13% compared with the first quarter of 2018. A total of 6,767,000
tons were shipped to outside customers in the first quarter of
2019, a 1% increase from fourth quarter of 2018 and a 3% decrease
from the first quarter of 2018. Total steel mill shipments in the
first quarter of 2019 increased 2% from the fourth quarter of 2018
and decreased 4% from the first quarter of 2018. Downstream steel
products shipments to outside customers in the first quarter of
2019 decreased 2% from the fourth quarter of 2018 and decreased 3%
from the first quarter of 2018.
The average scrap and scrap substitute cost per ton used during
the first quarter of 2019 was $352, a
2% decrease compared to $359 in the
fourth quarter of 2018 and an increase of 4% compared to
$337 in the first quarter of
2018.
Pre-operating and start-up costs related to the Company's growth
projects were $19.6 million, or
$0.05 per diluted share, in the first
quarter of 2019, compared with $17.4
million, or $0.04 per diluted
share, in the fourth quarter of 2018 and $2.3 million, or $0.01 per diluted share, in the first quarter of
2018.
Overall operating rates at the Company's steel mills decreased
to 87% in the first quarter of 2019 as compared to 88% in the
fourth quarter of 2018 and 92% in the first quarter of 2018.
Nucor's liquidity position remains very strong with $1.6
billion in cash and cash equivalents as of March 30, 2019.
During the first quarter of 2019, Nucor repurchased
approximately 1.2 million shares of its common stock for an average
price of $60.69 per share.
At March 30, 2019, Nucor had approximately
304,786,000 shares outstanding and approximately $1.4
billion available under its share repurchase program.
First Quarter Highlights
In February 2019, Nucor's board of directors
declared a cash dividend of $0.40 per
share payable on May 10, 2019 to
stockholders of record on March 29,
2019. This dividend is Nucor's 184th consecutive
quarterly cash dividend, a record the Company expects to
continue.
In March 2019, Nucor announced its
plans to build a new state of the art steel plate mill in
Brandenburg, Kentucky. The new plate mill will have an
estimated annual capacity of 1.2 million tons and employ
approximately 400 people. The project is expected to take
approximately three years to complete. The new plate mill
will significantly strengthen Nucor's plate product portfolio,
giving the Company the ability to produce approximately 97 percent
of the products demanded in the current domestic plate market,
including the specialty higher-margin products. The new plate mill
will complement Nucor's existing plate mills in North Carolina, Alabama and Texas and is expected to be fully operational
in 2022.
First Quarter of 2019 Analysis
As expected, earnings
from the Company's steel mills segment in the first quarter of 2019
decreased from the fourth quarter of 2018 primarily due to lower
average selling prices and margins for sheet products. In addition,
unusually challenging winter conditions delayed shipments to
certain construction customers of the Company's steel mills and
steel products segments.
The performance of the raw materials segment decreased in the
first quarter of 2019 as compared to the fourth quarter of 2018 due
primarily to margin compression in Nucor's DRI businesses, which
has experienced declining average selling prices since the fourth
quarter of 2018.
Second Quarter of 2019 Outlook
Earnings in the second
quarter of 2019 are expected to be similar to the first quarter of
2019, excluding the gain on the sale of the equity method
investment. The performance of the steel mills segment in the
second quarter of 2019 is anticipated to be consistent compared to
the first quarter of 2019 as weakening margins for sheet and plate
mill products are expected to be offset by improving margins for
structural and bar mill products.
The profitability of Nucor's steel products segment in the
second quarter of 2019 is expected to significantly improve as
compared to the first quarter of 2019, as typical seasonal patterns
and improved weather conditions should benefit nonresidential
construction markets.
The performance of the raw materials segment is expected to
decrease in the second quarter of 2019 as compared to the first
quarter of 2019 due to further margin compression in the Company's
DRI businesses.
About Nucor
Nucor and its affiliates are
manufacturers of steel and steel products, with operating
facilities in the U.S. and Canada.
Products produced include: carbon and alloy steel -- in bars,
beams, sheet and plate; hollow structural section tubing;
electrical conduit; steel piling; steel joists and joist girders;
steel deck; fabricated concrete reinforcing steel; cold finished
steel; precision castings; steel fasteners; metal building systems;
steel grating; and wire and wire mesh. Nucor, through The David J.
Joseph Company, also brokers ferrous and nonferrous metals, pig
iron and hot briquetted iron / direct reduced iron; supplies
ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is
North America's largest
recycler.
Forward-Looking Statements
Certain statements
contained in this news release are "forward-looking statements"
that involve risks and uncertainties. The words "believe,"
"expect," "project," "will," "should," "could" and similar
expressions are intended to identify those forward-looking
statements. Factors that might cause the Company's actual results
to differ materially from those anticipated in forward-looking
statements include, but are not limited to: (1) competitive
pressure on sales and pricing, including competition from imports
and substitute materials; (2) U.S. and foreign trade policies
affecting steel imports or exports; (3) the sensitivity of the
results of our operations to prevailing steel prices and changes in
the supply and cost of raw materials, including scrap steel; (4)
market demand for steel products; and (5) energy costs and
availability. These and other factors are discussed in Nucor's
regulatory filings with the Securities and Exchange Commission,
including those in Nucor's 2018 Annual Report on Form 10-K, Item
1A. Risk Factors. The forward-looking statements contained in this
news release speak only as of this date, and Nucor does not assume
any obligation to update them.
Broadcast of Conference Call
You are invited to listen
to the live broadcast of Nucor's conference call in which
management will discuss Nucor's first quarter results on
April 23, 2019 at 2:00 p.m. eastern time. The conference call will
be available over the Internet at www.nucor.com, under Investor
Relations.
TONNAGE
DATA
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
(13 Weeks) Ended
|
|
|
|
March 30,
2019
|
|
March 31,
2018
|
|
Percentage
Change
|
Steel mills total
shipments
|
|
|
|
|
|
|
|
Sheet
|
|
2,644
|
|
2,698
|
|
-2%
|
|
Bars
|
|
2,001
|
|
2,242
|
|
-11%
|
|
Structural
|
|
564
|
|
601
|
|
-6%
|
|
Plate
|
|
606
|
|
596
|
|
2%
|
|
Other
|
|
174
|
|
131
|
|
33%
|
|
|
|
5,989
|
|
6,268
|
|
-4%
|
|
|
|
|
|
|
|
|
Sales tons to
outside customers:
|
|
|
|
|
|
|
Steel
mills
|
|
4,772
|
|
5,016
|
|
-5%
|
|
Joist
|
|
110
|
|
105
|
|
5%
|
|
Deck
|
|
106
|
|
106
|
|
-
|
|
Cold
finished
|
|
143
|
|
147
|
|
-3%
|
|
Fabricated
concrete
|
|
|
|
|
|
|
|
reinforcing
steel
|
|
259
|
|
290
|
|
-11%
|
|
Piling
|
|
138
|
|
126
|
|
10%
|
|
Tubular
products
|
|
263
|
|
284
|
|
-7%
|
|
Other
|
|
976
|
|
893
|
|
9%
|
|
|
|
6,767
|
|
6,967
|
|
-3%
|
CONDENSED
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
|
(In thousands,
except per share data)
|
|
|
|
|
|
Three
Months (13 Weeks) Ended
|
|
|
|
|
|
March 30,
2019
|
|
March 31,
2018
|
|
|
|
|
Net
sales
|
$
6,096,624
|
|
$
5,568,419
|
|
|
|
|
Costs, expenses
and other:
|
|
|
|
Cost of
products sold
|
5,200,732
|
|
4,842,013
|
Marketing,
administrative and other expenses
|
180,739
|
|
182,960
|
Equity in
earnings of unconsolidated affiliates
|
(2,906)
|
|
(9,580)
|
Interest
expense, net
|
28,443
|
|
37,114
|
|
5,407,008
|
|
5,052,507
|
Earnings before
income taxes and
|
|
|
|
noncontrolling
interests
|
689,616
|
|
515,912
|
Provision for
income taxes
|
158,823
|
|
135,800
|
Net
earnings
|
530,793
|
|
380,112
|
Earnings
attributable to
|
|
|
|
noncontrolling
interests
|
28,987
|
|
25,933
|
Net earnings
attributable to
|
|
|
|
Nucor
stockholders
|
$
501,806
|
|
$
354,179
|
|
|
|
|
Net earnings per
share:
|
|
|
|
Basic
|
$1.63
|
|
$1.11
|
Diluted
|
$1.63
|
|
$1.10
|
|
|
|
|
Average shares
outstanding:
|
|
|
|
Basic
|
306,585
|
|
319,421
|
Diluted
|
307,180
|
|
320,474
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 30,
2019
|
|
Dec. 31,
2018
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and
cash equivalents
|
|
$
1,550,807
|
|
$
1,398,886
|
|
Short-term
investments
|
|
50,000
|
|
-
|
|
Accounts
receivable, net
|
|
2,483,138
|
|
2,505,568
|
|
Inventories,
net
|
|
4,445,228
|
|
4,553,500
|
|
Other
current assets
|
|
121,170
|
|
178,311
|
|
|
|
|
|
|
|
|
|
|
Total
current assets
|
|
8,650,343
|
|
8,636,265
|
|
|
|
|
|
|
|
|
Property,
plant and equipment, net
|
|
5,573,237
|
|
5,334,748
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
2,183,677
|
|
2,184,336
|
|
|
|
|
|
|
|
|
Other
intangible assets, net
|
|
806,888
|
|
828,504
|
|
|
|
|
|
|
|
|
Other
assets
|
|
872,553
|
|
936,735
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
18,086,698
|
|
$
17,920,588
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
debt
|
|
$
71,438
|
|
$
57,870
|
|
Accounts
payable
|
|
1,429,776
|
|
1,428,191
|
|
Salaries,
wages and related accruals
|
|
371,913
|
|
709,397
|
|
Accrued
expenses and other current liabilities
|
|
694,888
|
|
610,842
|
|
|
|
|
|
|
|
|
|
|
Total
current liabilities
|
|
2,568,015
|
|
2,806,300
|
|
|
|
|
|
|
|
|
Long-term
debt due after one year
|
|
4,233,792
|
|
4,233,276
|
|
|
|
|
|
|
|
|
Deferred
credits and other liabilities
|
|
782,225
|
|
679,044
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
7,584,032
|
|
7,718,620
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
Nucor
stockholders' equity:
|
|
|
|
|
|
Common
stock
|
|
152,061
|
|
152,061
|
|
Additional
paid-in capital
|
|
2,083,339
|
|
2,073,715
|
|
Retained
earnings
|
|
10,714,279
|
|
10,337,445
|
|
Accumulated
other comprehensive loss,
|
|
|
|
|
|
|
net of
income taxes
|
|
(308,787)
|
|
(304,133)
|
|
Treasury
stock
|
|
(2,526,701)
|
|
(2,467,010)
|
|
|
Total Nucor
stockholders' equity
|
|
10,114,191
|
|
9,792,078
|
|
|
|
|
|
|
|
|
Noncontrolling
interests
|
|
388,475
|
|
409,890
|
|
|
|
|
|
|
|
|
|
|
Total
equity
|
|
10,502,666
|
|
10,201,968
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and equity
|
|
$
18,086,698
|
|
$
17,920,588
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months (13
Weeks) Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 30,
2019
|
|
March 31,
2018
|
|
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
|
Net
earnings
|
|
|
$
530,793
|
|
$
380,112
|
|
Adjustments:
|
|
|
|
|
|
|
|
Depreciation
|
|
|
158,171
|
|
158,665
|
|
|
Amortization
|
|
|
21,500
|
|
22,453
|
|
|
Stock-based
compensation
|
|
12,492
|
|
10,463
|
|
|
Deferred income
taxes
|
|
19,948
|
|
29,988
|
|
|
Distributions from
affiliates
|
|
26,034
|
|
25,150
|
|
|
Equity in earnings
of unconsolidated affiliates
|
(2,906)
|
|
(9,580)
|
|
|
Changes in assets
and liabilities (exclusive of acquisitions and
dispositions):
|
|
|
|
|
|
|
Accounts
receivable
|
|
21,958
|
|
(343,982)
|
|
|
|
Inventories
|
|
|
107,907
|
|
(246,933)
|
|
|
|
Accounts
payable
|
|
(11,397)
|
|
157,836
|
|
|
|
Federal income
taxes
|
|
105,573
|
|
86,746
|
|
|
|
Salaries, wages
and related accruals
|
(325,866)
|
|
(171,626)
|
|
|
|
Other operating
activities
|
|
(13,499)
|
|
28,629
|
|
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
|
650,708
|
|
127,921
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(288,786)
|
|
(172,203)
|
|
Investment in and
advances to affiliates
|
(29)
|
|
(55,901)
|
|
Divestiture of
affiliates
|
|
|
67,591
|
|
-
|
|
Disposition of
plant and equipment
|
|
12,910
|
|
5,967
|
|
Acquisitions (net
of cash acquired)
|
|
(9,495)
|
|
-
|
|
Purchases of
investments
|
|
(50,000)
|
|
-
|
|
Proceeds from the
sale of investments
|
|
-
|
|
50,000
|
|
Other investing
activities
|
|
2,176
|
|
975
|
|
|
|
|
|
|
|
|
|
Cash used in
investing activities
|
|
(265,633)
|
|
(171,162)
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
Net change in
short-term debt
|
|
13,568
|
|
21,203
|
|
Issuance of common
stock
|
|
3,137
|
|
15,312
|
|
Payment of tax
withholdings on certain stock-based compensation
|
(1,364)
|
|
(4,430)
|
|
Distributions to
noncontrolling interests
|
(50,402)
|
|
(24,793)
|
|
Cash
dividends
|
|
|
(123,400)
|
|
(121,787)
|
|
Acquisition of
treasury stock
|
|
(72,830)
|
|
(29,193)
|
|
Other financing
activities
|
|
(1,947)
|
|
(1,844)
|
|
|
|
|
|
|
|
|
|
Cash used in
financing activities
|
|
(233,238)
|
|
(145,532)
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
84
|
|
(77)
|
|
|
|
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents
|
151,921
|
|
(188,850)
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents - beginning of year
|
1,398,886
|
|
949,104
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents - end of three months
|
$
1,550,807
|
|
$
760,254
|
|
|
|
|
|
|
|
|
|
Non-cash investing
activity:
|
|
|
|
|
|
|
Change in accrued
plant and equipment purchases and assets recorded
|
|
|
|
|
under capital
lease arrangements
|
|
$
12,925
|
|
$
(9,396)
|
View original
content:http://www.prnewswire.com/news-releases/nucor-reports-results-for-first-quarter-of-2019-300835998.html
SOURCE Nucor Corporation